09TBILISI346, GEORGIA SUBJECT: JSC PROCREDIT BANK GEORGIA

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UNCLAS TBILISI 000346
SENSITIVE
SIPDIS
DEPT FOR EUR/CARC, EEB, OPIC for DEBORAH HOWARD
E.O. 12958: N/A
TAGS: EINVEFINGG
SUBJECT: GEORGIA SUBJECT: JSC PROCREDIT BANK GEORGIA
REF STATE 8834
¶1. Summary: In response to the reftel, Post's inquiry into JSC
ProCredit Bank Georgia from both an international financial
institution and a competitor revealed no negative information. End
Summary.
¶2. Post has no reports questioning the credibility or positive image
of JSC ProCredit Bank Georgia (PCBG). Post contacted IFC
(International Financial Corporation ) which is familiar with PCBG's
affairs and activities in the Georgian banking sector. IFC
confirmed that PBG is a legitimate bank in good standing. A
representative of HSBC confirmed the same.
¶3. In December last year, PCBG's Fitch Ratings were the following:
Long-term foreign currency Issuer Default Rating (IDR) at B+;
long-term local currency IDR at BB-; short-term foreign and local
currency IDR at B; individual at D; and support at 4. The outlook
for the long-term IDR ratings is negative. According to Fitch, the
individual ratings reflect PCBG's reasonable asset quality and
performance to date, satisfactory liquidity, sound capitalization
and significant domestic franchise. However, the ratings also note
the high-risk operating environment, credit and operational risks
associated with recent rapid growth, and PCBG's high proportion of
foreign currency lending.
¶4. PCBG is the fourth-largest bank in Georgia in loan and customer
deposits, with a market share of about 8%. Like other banks in the
ProCredit group, PCBG is a development-oriented bank which
specializes in micro and SME lending in emerging economies.
ProCredit Bank has 57 branches countrywide and serves more than
220,000 clients.
¶5. On December 19, 2008, PCBG signed an agreement to receive $47.5
million credit from the German Development Bank (KfW), backed by the
guarantees of the Austrian Development Bank OeEB. The credit will
be used to increase the credit portfolios of small and middle size
enterprises. Credit will be issued in 5 year terms with an annual
interest rate of 19-34%. IFC (the World Bank Group) is also planning
to issue a credit to PCBG consistent with their pledge at the Donors
Conference in Brussels (October 2008).
¶6. PCBG plans to construct a new head office in the center of
Tbilisi, and on February 17 announced a tender for construction
companies.
¶7. Post has no information that PCBG has links to corruption or
terrorism. (Embassy Note: Maya Meredova, deputy General Director fo
PCBG is married to the CFO of Georgia's largest bank - Bank of
Georgia. End Note.)

The information recorded on this site has been extracted from http://Wikileaks.org (Georgia) database..

We wish to express our gratitude to Julian Assange and his team for making this data available as it is an important public record.

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